An ASIC investigation found that AIW-aligned firm Otium Advice adopted a “one size fits all” advice model and gave “inappropriate” advice for a client to switch super funds.
Otium chief executive Drew Grosskreutz was handed a three-year ban in October as part of the same investigation.
In a statement, the regulator said it is concerned that AIW may have failed to take reasonable steps to ensure its authorised representatives comply with financial services laws.
Under the terms of the EU, AIW will appoint an independent reviewer.
AIW is a related entity of Astute Financial.
Hmm I reported this group to ASIC. It appears to me that many Licencees out there do not do have the Supervision and Monitoring of their representatives in place in fear they will miss out on their 10% click of the ticket. Many AFSL’s fit the same mould and if all AFSL’s had to send their Monitoring and Supervision plans to ASIC we would quickly see who is swiimming without their costumes. ASIC were not a sleep at the wheel in fact they acted very quickly on this one from my point of view. I dont think AIW in anyway reported to ASIC it’s concern otherwise they would have terminated their agreement way before the Adviser got banned.
It is interesting that ASIC appears glowing once again when it is the compliance function of an AFSL that would have reported the breach to ASIC to undertake the enforcement action eluded to in the article. If ASIC were genuine in its stance of proper regulation, it would not condone the SMSF sector to run amock as currently, accountants, planners, mortgage brokers are indeed receiving kickbacks from the property development secotr selling garbage to an anwary consumer and receiving HUGE commissions without an SOA and all the disclosure required. Well done AIW for reporting the matter to ASIC. More needs be done by all AFSL’s to stamp out bad practice. ASIC….are you awake ? You seem to have been asleep creating problems and then again trying to take credit when enforcement is undertaken. What would have happended if NO AFSL reported breaches…nothing. Just ask investors in Prime Property Group, Timbercorp, Great Southern. Proper regulation comes from ensuring problems are stopped at the beginning. But, since this is property….well we will wait until the problems start as there is GST and Stamp Duty to collect first. ASIC…..wake up. Investors and an industry asks for a greater level of confidence in what you and the investment community do. Associations in both the Accounting and FP profession with regulators that give a damn need to do more. Well done to any AFSL that, like AIW, reports and removes swill from the IFA world as they cause harm to the rest of this great industry.
Spot on mate!
Property needs to be a financial product in order to be able to receive a commission ASAP.
I’m an old bloke, however I don’t understand how often advisers and licensees get this stuff wrong. Interestingly I don’t think education and ethics solves the problem, but rather common sense.